Earlier the KYC Know your customer) norms had to be complied by those investors who invest more than Rs 50,000 in Mutual Funds. But, w.e.f January 1, 2011, you will need to comply with the know-your-customer (KYC) norms before you invest in a mutual fund , irrespective of the amount.
What is KYC?
They are norms under Prevention of Money Laundering Act to keep a check on the legality of funds used for investment. KYC is done to prevent money laundering, i.e., converting illegal or “black” money into legitimate currency through various channels, as key documents and details such as bank details, permanent account number (PAN) card, residence proof are captured by way of the KYC process to ensure that the investor is genuine and can be traced if need be.
How to get it done?
Download the KYC form from websites of the Association of Mutual Fund of India, or Amfi, MF industry’s trade body, (www.amfiindia.com) or from that of your fund house or any of the point of sale (POS) terminals that Amfi has appointed throughout the country. Amfi’s website has a list of POS terminals in your city.
Attach:
Self-certified copy of your PAN card
An address proof such as your telephone or electricity bills
Submit these along with you KYC form, to your nearest POS. Show your original PAN card at the POS, which will be given back to you instantly once it has been verified with the copy. The POS will give you an acknowledgment across the counter on the same day.
Unlike in a systematic investment plan where you submit the copy of the KYC Acknowledgement only at the time of submitting your application form and not with every installment, investing in a MF will require you to submit a of the KYC Acknowledgement each time you invest. It is not required to submit a copy of your pan card once you are KYC-compliant as it is understood that you have a PAN card.
Where to check?
Visit www.cvlindia.com and click on “inquiry on KYC”. A small window will pop up on your screen that will ask for your PAN card number. Fill it up and submit it. If your KYC is approved, you will get a notification on the screen saying so. Take a printout of it as proof.